“Naftogaz of Ukraine” declared readiness to resolve disputes with “Gazprom” by “European standards”

KIEV, February 16. Company “Naftogaz of Ukraine” hopes that will find a way to resolve disputes with Russia’s Gazprom “in accordance with the European standards of work of the gas market, including through court”. This was reported by the press service of the Ukrainian company.

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“Naftogaz” has offered to lead the contract unresolved question of accounting for gas balancing in accordance with the standard European practice. This proposal was first made by “Naftogaz” in the summer of 2014 and currently is pending before the Arbitration Institute of the Stockholm chamber of Commerce”, – the report says.

The company explained that the so-called balancing gas is produced “in connection with the technical characteristics of gas transportation, which resulted in volumes of gas entered the system, do not match the amounts transferred to the neighbouring gas transportation system in each period exactly to cubic meters”. “Balancing these volumes can be up to several percent of the total transported volume for the period,” – said the press service.

“Naftogaz” stated that the claim “Gazprom” for the 5 million cubic meters of gas balancing, resulting in four months of 2014, in the period, when “Naftogaz” did not import Russian gas for Ukraine. “The volume, transported by Ukraine in the EU for the same period amounted to 17 million cubic meters. 420 Thus, the outstanding issue is about 0.03% of transported volume”, – is told in the message.

The press service said that the European practice provides for balancing “the classification of these amounts by the parties in the period following the reporting one”. Gazprom, in turn, insisted on payment by Naftogaz of penalties for balancing gas, formed at the end of each month in which there was no import of Russian gas for Ukraine. To resolve the dispute, the volume of gas balancing is accounted for by Naftogaz as gas owned by Gazprom, said the company.

The positions of the parties

According to the report of Gazprom under Russian accounting standards (RAS), the Russian company believes that on the territory of Ukraine “unauthorized ass” gas from Russia at $5,861 million

The corresponding claim the company filed in an arbitration court in Stockholm. “October 16, 2015 PJSC “Gazprom” has submitted to arbitration the claims of the NJSC “Naftogaz of Ukraine” and the documents in support of its position, presenting to the NJSC “Naftogaz of Ukraine” counter claim for payment of unauthorized settled on the territory of Ukraine volumes of gas in the amount of $5,861 million Oral hearing on the case scheduled for the end of September 2016, a decision by arbitrators is scheduled before the end of January 2017,” – said in the report.

Earlier “Naftogaz” appealed to the arbitration court of Stockholm with the claim to “Gazprom”, in which the Ukrainian company is required including to pay compensation for not delivering the transit volumes of gas in the amount of $3.2 billion, plus interest. The estimated requirements of $6.2 billion.

In addition, the report of the Russian company said that, according to “Gazprom” to increase the debt for gas, and breach of contractual payment obligations on the part of Ukraine has brought political and economic crisis in Ukraine.

The debt of “Naftogaz of Ukraine” to “Gazprom” for the delivered in 2013-2014 gas excluding interest amounts as of December 31, 2015 to $2.2 billion.